T-Mobile US (TMUS) Q1 2026 earnings summary

Executive summary

• Achieved industry-leading Q1 2026 growth with postpaid net account additions of 217,000 (up 6% year-over-year), postpaid ARPA up 3.9% to $151.93, and NPS at 45%, over 20% higher than the next competitor.

• Total revenues rose 11% year-over-year to $23.1 billion, driven by strong postpaid and fiber expansion, and recent acquisitions including UScellular, Metronet, and Lumos.

• Net income declined 15% year-over-year to $2.5 billion, impacted by merger and restructuring costs.

• Core Adjusted EBITDA increased 12% year-over-year to $9.2 billion, maintaining an industry-leading margin of 49.1%.

• Raised 2026 guidance for postpaid net account additions, Core Adjusted EBITDA, net cash from operations, and Adjusted Free Cash Flow.

Financial highlights

• Postpaid service revenue grew 15% year-over-year to $15.6 billion; total service revenue up 11% to $18.8 billion.

• Equipment revenues increased 8% year-over-year to $4.0 billion, with a higher mix of high-end phones.

• Adjusted Free Cash Flow rose 5% year-over-year to $4.6 billion; margin was 24.4%.

• Net cash provided by operating activities was $7.2 billion, up 5% year-over-year.

• Returned $6.0 billion to shareholders in Q1 2026 via buybacks and dividends.

Outlook and guidance

• 2026 postpaid net account additions guidance raised to 950,000–1,050,000.

• Full-year service revenue expected at ~$77 billion (8% growth); Q2 service revenue guided to ~$19 billion (9% year-over-year growth).

• Core Adjusted EBITDA guidance increased to $37.1–$37.5 billion; Q2 core adjusted EBITDA expected at ~$9.4 billion (10% year-over-year growth).

• Adjusted Free Cash Flow guidance raised to $18.1–$18.7 billion for the year.

• Capital expenditures expected to be approximately $10.0 billion.